Company Says It Is 'Monitoring The Situation'

Airbus may be preparing for a cut in production of its A320 airliners by as much as half for up to two quarters due to the COVID-19 pandemic.

Reuters reports that suppliers have been asked to cut their shipments of parts by 40 percent, which would accommodate production of about 36 jets per month, according to sources. Currently, Airbus produces about 60 A320s per month.

In a comment posted on its website, Airbus said it is "closely monitoring the evolving COVID-19 situation worldwide and is in constant dialogue with its customers, suppliers and institutional partners.

"Airbus is in the process of assessing the implications of the pandemic on its operations and the potential mitigation measures that could be implemented.

"The company will not provide further comment at this stage."

Both Airbus and Boeing are reportedly looking into production cuts for their wide-body airplanes as well, including the A350 and Boeing 777.

Both planemakers hope to avoid having a large number of unsold airplanes sitting at factories as the pandemic unfolds.

Before the Coronavirus pandemic began to grow, Airbus had planned to increase its A320 production to 63 per month next year, and continue to grow the production rate over the subsequent two years. But Airbus suspended its near-term delivery guidance last month, meaning those plans have been shelved.

(Image from file)

FMI: Source report
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